Britons who consider their options when making a large purchase could find loans to be the most economical form of funding, it has been claimed.

Steve Baillie, head of loans at Sainsbury's Bank, observes that credit cards typically carry a higher interest rate.

However, taking into account the typical rates on unsecured and secured loans could prove more favourable for many consumers.

"Buying cars with overdrafts or buying cars on credit cards can be a very expensive business," Mr Baillie explains.

He adds that individuals should not be afraid to obtain long-term borrowing if the product they are buying is likely to last a long time.

"The last thing I want is customers getting into debt and not having anything to show for it," he reveals.

Figures from Credit Action show an £11.2 billion increase in consumer lending in September, of which £9.8 billion was in the form of secured loans.ADNFCR-1287-ID-18341257-ADNFCR

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